GAO Challenges Administration on Contract Savings

November 25, 2011

Administration procurement officials and Government Accountability Office auditors are at odds over the administration's claimed savings from contracting reform initiatives.

Did government agencies save $15 billion from fiscal 2009 to 2010 through the administration's savings initiative or did officials overstate the numbers? A recent GAO report questioned the Office of Management and Budget's calculations.

OMB reported recently fiscal 2010's contract spending was lower than the previous year for the first time in the past 13 years. Agencies spent $15 billion less than they did in fiscal 2009, according to OMB. Further, administration officials said agencies saved $80 billion over what they would have spent if spending had continued at the same rate it was under the George W. Bush administration.